Lithuania Economy 1997

Economy - overview Since declaring independence in 1990, Lithuania has implemented reformsaimed at eliminating the vestiges of the former socialist system. With thehelp of the IMF and other international institutions, the government has adopteda disciplined program to restrain inflation, abolish most price controls,lower the budget deficit, and privatize the economy. More than two-thirdsof its industrial facilities as well as most housing and agricultural enterpriseshave been privatized. Although some important "strategic" enterprises remainexempt from privatization, the new government has outlined plans to privatizelarge companies dealing with transport, pipelines, communications, and energy.While Lithuania has reduced its trade dependence on Russia and other republicsof the FSU from 85% in 1991 to about 40% in 1995, Russia remains Lithuania'sleading trading partner. Lithuania has made great strides in reducing itsannual rate of inflation - from over 1,100% in 1992 to about 35% in 1995 and13.1% in 1996. Although the government tried to stay the course on economicreform and fiscal discipline in 1996, the new government, which took office in 1996 inherited high debts for energy supplies. As for real resources,Lithuania's growth depends largely on its ability to exploit its strategiclocation - with its ice-free port at Klaipeda and its rail and highway hubin Vilnius connecting it with Eastern Europe, Belarus, Russia, and Ukraine.Lacking important natural resources, it will remain dependent on imports of fuels and raw materials.

GDP purchasing power parity - $14.1 billion (1996 estimate as extrapolatedfrom World Bank estimate for 1994)

GDP - real growth rate 3.4% (1996 est.)

GDP - per capita purchasing power parity - $3,870 (1996 est.)

GDP - composition by sector
agriculture: 13%
industry: 32%
services: 55% (1996 est.)

Inflation rate - consumer price index 13.1% (1996 official est.)

Labor force
total : 1.836 million
by occupation: industry and construction 42%, agriculture and forestry 18%, other 40%(1990)

Unemployment rate 8% (January 1997)

Budget
revenues: $1.4 billion
expenditures: $1.5 billion, including capital expenditures of $168 million (1995)

Industries metal-cutting machine tools, electric motors, television sets, refrigeratorsand freezers, petroleum refining, shipbuilding (small ships), furniture making,textiles, food processing, fertilizers, agricultural machinery, optical equipment,electronic components, computers, amber

Industrial production growth rate 3.7% (1996)

Electricity - capacity 5.46 million kW (1994)

Electricity - production 9.57 billion kWh (1994)

Electricity - consumption per capita 2,151 kWh (1995 est.)

Agriculture - products grain, potatoes, sugar beets, vegetables; meat, milk, eggs; fish; flaxfiber

Exports
total value: $3.3 billion (1996 est.)
commodities : textiles 15%, agriculture and food 14%, chemicals 12%, fuels 12%, machinery11% (1995)
partners: Russia, Germany, Belarus, Latvia, Ukraine (1995)

Imports
total value: $4.56 billion (1996 est.)
commodities: oil 25%, machinery 17%, textiles 10%, chemicals 9% (1995)
partners: Russia, Germany, Ukraine, Poland, Belarus

Debt - external $895 million

Economic aid
recipient: ODA, $144 million (1993)
note : commitments from the West and international financial institutions,$765 million (1992-95)

Currency 1 Lithuanian litas = 100 centas

Exchange rates litai per US$1 - 4.000 (January 1997), 4.000 (1996), 4.000 (1995), 3.978(1994), 4.344 (1993), 1.773 (1992); note - fixed rate since 1 May 1994

Fiscal year calendar year

NOTE: The information regarding Lithuania on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Lithuania Economy 1997 information contained here. All suggestions for corrections of any errors about Lithuania Economy 1997 should be addressed to the CIA.